Beruflich Dokumente
Kultur Dokumente
Presented by National Treasury: Chief Directorate Local Government Budget Analysis September to December 2013
1
Programme Outline
1. SCOA The Local Government budget and financial management reform agenda
Background to the project initiative for a SCOA for Municipalities
Regulation The Municipal Regulation on a Standard Chart of Accounts (SCOA)
Example
Outline:
3
Local government financial management reform
roadmapLGBAs core business
Champion the Local Initiate, facilitate and oversee all municipal budget reforms with
Government Budget Reform emphasis on the Municipal Budget and Reporting Regulations, in-
Agenda year reporting and grant monitoring frameworks
Monitor the implementation of Monitor, oversee and report on municipal budget implementation
LG budgets and conditional Collect, analyse and consolidate municipal information
grants publish information Publish budget implementation information on a quarterly basis in
terms of S71 of the MFMA
Support the Implementation of Monitor compliance with budget related prescriptions in the MFMA
the MFMA and MBRR Assist in identifying municipalities in financial distress
Achievements to date
5
Resulting in the routine publication of LG budget
and performance information
6
But challenges still exist in the LG accountability
cycle
Data challenges:
9
Linkage and role of SCOA within the overall
Municipal Accountability Cycle
5 year Strategy
IDP
Three year Budget
Focus of MBRR Budget
Annual Plan to Implement
SDBIP
In-year
Monitoring
Focus of MBRR Reporting Oversight
Next Project
Annual Reports
Financial
Statements
Annual
Report
10
Benefits to be derived from SCOA include,
among others
SCOA design provides for alignment of spending and revenue collection based on classifications
consistent with national/provincial departments within the uniqueness of local government
Framework provides for coding of transactions for classifying budgeting and financial reporting
labels for revenue, expenditure, assets, liabilities and net assets
Ensuring proper alignment between the budget, reporting and accountability informing financial
sustainability & evidence based financial management
Benefits from standardising:
Transparency reporting and comparative analytical purposes
Reporting flexibility extraction of information populating various reporting systems
Comparability Benchmarking, standards and measures
Uniform transaction process improved mobility of practioners
Report automation customised reporting within financial application
System Design provides certainty to industry
XBRL set the basis for further standardisation following global best practices
Consolidation meaningful consolidation and extraction at different levels of detail
Single version of the truth various systems have the same basis for classification
ensuring consistency in financial information disseminated into the public domain
11
Background to the project initiative for a SCOA
for Municipalities
Design Principles: Overall
12
Background to the project initiative for a SCOA
for Municipalities
Stakeholder Consultation
13
Background to the project initiative for a
SCOA for Municipalities
SCOA VERSION 1 - INTITIAL RESEARCH
Studied/identified potential changes between the SCOA for Departments/National
Treasury Annual Financial Statement Template for Municipalities
Studied/identified potential changes between the SCOA for Departments/Municipal
Budget and Reporting Regulations and Return Forms
Selected information from 5 Pilot Municipalities
Phase 1 Requested clarification of information from the selected Pilot Municipalities
Formulate Version 1 of the SCOA, agreed on the segments collectively being the
SCOA for Municipalities and the Overall Design Principles
14
Background to the project initiative for a
SCOA for Municipalities
VERSION 3 - INTERACTION WITH SPECIFIC STAKEHOLDERS
Engagements with System Developers
User Group Meetings
Identified and interacted with more potential pilot municipalities
NERSA Meetings and provision in SCOA
National Department Interactions: Water Affairs, Trade and Industry and
Human Settlements
Set-up of SQL Database and Illustration
Road shows and Workgroups
Internal National Treasury consultation with stakeholders
15
Background to the project initiative for a SCOA
for Municipalities
Legal Framework
Guided by Constitution and MFMA
Section 168 of the MFMA states that: the Minister of Finance, acting with
the concurrence of the cabinet member responsible for local government, may
make regulations for, among other things (p) any other matter that may
facilitate the enforcement and administration of the Act
Project give effect to Section 216(1) of the Constitution
SCOA to be prescribed ito section 168 of the MFMA to ensure compliance by
ALL MUNICIPALITIES and MUNICIPAL ENTITIES
17
Background to the project initiative for a SCOA
for Municipalities
Risks Associated with the Implementation of the SCOA road map
Various systems and multiple vendors vs transversal application for
provincial/national departments
May 2013:
Financial applications: 13 system vendors
8 major vendors covering 259 municipalities
5 minor vendors covering 14 municipalities
5 In-house developments
Concurrently runned special projects relating to business processes and systems to
mitigate eventualities associated with SCOA implementation. Primary objective to
identify financial systems in operation
No mapping of SCOA as an implementation option Must be coded in the system
SCOA dimensions assessed against system functionality to determine ability to
facilitate the implementation of SCOA Vendors indicated multi-dimensional chart
could be accommodated; possible reconfiguration and refinements required
Costs and funding limitations
Change management
Full municipal compliance 1 July 2016 (2016/17 MTREF)
18
Background to the project initiative for a SCOA
for Municipalities
SCOA is:
In-house developed
Consideration given to alignment to national/provincial departments
Accommodating GRAP requirements
Designed with the input from all stakeholders not limited to NT
Uniqueness of Municipalities
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The publication of the SCOA Regulation for
comment
LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, 2003:
PUBLICATION OF DRAFT MUNICIPAL REGULATIONS ON STANDARD CHART
OF ACCOUNTS FOR PUBLIC COMMENT
Published for comment by the Minister ito MFMA 2003 (Act No. 56 of 2003)
Comment to be submitted by:-
email: jan.hattingh@treasury.gov.za
fax: (012) 395-6553
post: The Director-General
National Treasury
Private Bag X115
Pretoria, 0001
hand: Room HB-03.05
40 Church Square
Pretoria
The draft regulations are also available at www.treasury.gov.za under
http://mfma.treasury.gov.za/RegulationsandGazettes or Mr Jan Hattingh can be
contacted for a copy.
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The SCOA Regulation
CONTENT [Pages 1-15]
PREAMBLE
CHAPTER 1: INTERPRETATION, OBJECT AND APPLICATION
1. Definitions
2. Object of the Regulations
3. Application of these Regulations
21
The SCOA Regulation
CHAPTER 4: TECHNICAL COMMITTEE FOR SCOA
8. Establishment of Technical Committee for SCOA
9. Composition of SCOA Technical Committee
10. Functions of SCOA Technical Committee
11. Meeting of SCOA Technical Committee
CHAPTER 6: GENERAL
14. Access by National Treasury
15. Postponement of implementation and exemption
16. Short title and commencement
SCHEDULE: SEGMENTS OF SCOA FOR MUNICIPALITIES AND MUNICIPAL ENTITIES
22
The SCOA Regulation Definitions (1)
Act means the Local Government: Municipal Finance Management Act, 2003 (Act No.
56 of 2003);
board of directors, in relation to a municipal entity, has the meaning assigned to it in
section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);
business processes means the set of activities taking place from the initiation of a
process within a municipality or municipal entity to the completion thereof;
classification framework means the classification framework provided for in the
standard chart of accounts;
Director-General means the Director-General of the National Treasury;
general ledger means the central depository of accounting data transferred from all
sub-ledgers;
minimum business process requirements means the set of minimum components
of all business processes determined in terms of regulation 6;
23
The SCOA Regulation Definitions (2)
minimum system requirements means those specifications for an integrated
software solution, incorporating an enterprise resource management system determined
in terms of regulation 7;
municipal entity has the meaning assigned to it in section 1 of the Local
Government: Municipal Systems Act, 2000;
municipal council has the meaning assigned to it in section 1 of the Local
Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);
municipality has the meaning assigned to it in section 1 of the Local Government:
Municipal Systems Act, 2000;
SCOA Committee means the Technical Committee for the Standard Chart of
Accounts for municipalities and municipal entities established by regulation 8;
standard chart of accounts means a multi-dimensional classification framework
providing the method and format for recording and classifying financial transaction
information in the general ledger forming part of the books of account containing a
standard list of all available accounts.
24
The SCOA Regulation Chapter 1
Object of these Regulations
2. The object of these Regulations is to provide for a national standard for the
uniform recording and classification of municipal budget and financial
information at a transaction level by prescribing a standard chart of accounts for
municipalities and municipal entities which
(a) is aligned to the budget formats and accounting standards prescribed for
municipalities and municipal entities and with the standard charts of accounts
for national and provincial government; and
(b) enables uniform information sets recorded in terms of national norms and
standards across the whole of government for the purposes of national policy
coordination and reporting, benchmarking and performance measurement in
the local government sphere.
Application of these Regulations
3. These Regulations apply to all municipalities and municipal entities.
25
The SCOA Regulation Chapter 2
CHAPTER 2 ((Continue...)..) - STANDARD CHART OF ACCOUNTS FOR
MUNICIPALITIES AND MUNICIPAL ENTITIES
26
The SCOA Regulation Chapter 3
CHAPTER 3 - MINIMUM BUSINESS PROCESS AND SYSTEM REQUIREMENTS
Minimum business process requirements
6. (1) The Minister may, by notice in the Gazette, determine minimum business
process requirements for municipalities and municipal entities to enable
implementation of regulations 4 and 5.
(2) Each municipality and municipal entity must implement the minimum business
process requirements by the date determined in the notice referred to in sub-
regulation (1).
7.(1) The Minister may, by notice in the Gazette, determine the minimum system
requirements for municipalities and municipal entities to enable implementation
of regulations 4 and 5.
(2) Each municipality and municipal entity must implement the minimum system
requirements by the date determined in the notice referred to in sub-regulation
1.
27
The SCOA Regulation Chapter 4 (1)
CHAPTER 4 - TECHNICAL COMMITTEE FOR STANDARD CHART OF ACCOUNTS
Establishment of Technical Committee for Standard Chart of Accounts
8. A committee known as the Technical Committee for the Standard Chart of Accounts
is hereby established as a structure of the National Treasury.
Composition of SCOA Committee
9.(1) The SCOA Committee must consist of
(a) a chairperson;
(b) a deputy chairperson;
(c) five other members, each representing the functional areas of public finance,
intergovernmental relations, accounting, budget office and supply chain
management; and
(d) such further members as the Director-General considers necessary;
(2) The Director-General must designate employees of the National Treasury as
members of the SCOA Committee in the respective capacities for a term of three
years.
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The SCOA Regulation Chapter 4 (2)
CHAPTER 4 - TECHNICAL COMMITTEE FOR SCOA (Continue...)
Composition of SCOA Committee ((Continue...).)
(3) A member referred to in sub-regulation (1)(c) or (d) may nominate an alternate
to act in that members stead if unavailable.
(4) The deputy chairperson of the SCOA Committee must act in the place of the
chairperson of the Committee if unavailable.
(5) The Director General must take all reasonable steps to ensure that the SCOA
Committee is provided with the technical, administrative, financial and
logistical resources to enable it to fulfil its function and must determine its
procedures.
Functions of SCOA Committee
10. The SCOA Committee must
(a) oversee and administer the implementation of these Regulations;
(b) conduct pilot projects in different types of municipalities and municipal entities
in order to develop, test and improve the standard chart of accounts and
mechanisms for its implementation;
(c) develop guidelines for the implementation of these Regulations;
29
The SCOA Regulation Chapter 4 (3)
CHAPTER 4 - TECHNICAL COMMITTEE FOR SCOA (Continue...)
Functions of SCOA Committee (Continue Section 10)
(d) develop and provide training courses for municipal financial officials and
conduct implementation workshops on the implementation of these Regulations;
(e) regularly assess the capacity of municipalities and municipal entities to
implement these Regulations and provide appropriate support and assistance;
(f) regularly request comments and recommendations from municipalities and
municipal entities on the implementation of these Regulations;
(g) review the implementation of the standard chart of accounts in government as
a whole to ensure the alignment of the SCOA provided for in these Regulations
and the SCOA applicable in national and provincial government;
(h) review the effectiveness of these Regulations and its alignment with other
relevant regulatory measures;
(i) undertake such other functions relating to the implementation of these
Regulations as the Minister may direct;
30
The SCOA Regulation Chapter 4 (4)
CHAPTER 4 - TECHNICAL COMMITTEE FOR STANDARD CHART OF ACCOUNTS
(j) make recommendations to the Director-General and the Minister on any matter
referred to in paragraphs (a) to (i); and
(k) undertake any functions necessarily ancillary to any matter referred to in
paragraphs (a) to (j).
11. The chairperson of the SCOA Technical Committee or the Director-General may,
as required, convene meetings of the Committee, but the Committee must
convene at least once a year.
31
The SCOA Regulation Chapter 5
CHAPTER 5 - RESPONSIBILITIES OF MUNICIPAL FUNCTIONARIES
15.(1) The Minister may, by notice in the Gazette on good cause shown by a
municipality or municipal entity and after considering any recommendations of
the SCOA Committee, exempt such municipality or municipal entity from the
application of a provision of these Regulations, for the period and on the
conditions determined in the notice.
(2) A postponement or exemption in terms of sub-regulation (1) may:
(a) apply to (i) municipalities generally; or (ii) municipal entities generally; or
(b) be limited in its application to a particular (i) municipality; (ii) category of
municipalities, which may be defined either in relation to a type or budgetary
size of municipality or in any other manner; (iii) municipal entity; or (iv) a
category of municipal entities , which may either in relation to a type or
budgetary size of municipal entity or in any other manner.
34
The SCOA Regulation Chapter 6 (3)
CHAPTER 6 - GENERAL
35
2.
Conceptualising SCOA
Outline:
36
Conceptualising SCOA
Illustration
A. Internet Link
B. Excel Model
C. Presentation SNAP SHOT
38
3.
SCOA Segments
Outline:
Item: Revenue
Item: Expenditure Item Segment
Item: Assets, Liabilities and Net Assets
Fund
Function
Project
Regional Indicator
Costing
39
SCOA Segments
Standard
Classifica Function
tion
Reporting
Regional
Indicator Costing
Project Item
40
Design Principles All Segments
1. SCOA Master select from grid
2. Municipal Entities and Agencies applicable
3. Internal Billings, Departmental Charges and Activity Based Recovers provides for primary
cost only
4. Legislative and Regulatory Requirements See Table in Project Summary
5. Linking transactions by Business Process to SCOA See illustration
6. Category links and programming rules see Table in Project Summary
7. SCOA Detail Accounts Labels and Accounts defined by group linked to reporting
8. SCOA Definitions Definitions to assist practitioners
9. AFS and BRF Alignment detail and by groups of accounts
10. Standards of GRAP Accounting framework
11. ERF Define categories for transfers
12. Secondary Costing Costing Segment & Primary Costing in Item Segment
13. Allocations In-kind GRAP 23
14. Transfers and Subsidies National DORA annual update
15. District Municipalities and Provincial Functional Classification
16. Transfers to All other Entities subjected to inputs from municipalities
17. Specific accounts relating to Municipal Entities
41
Segment: Item
Revenue
Expenditure
Assets
Reporting
Liability
Net Assets
Item
42
Segment: Item - Revenue
Reporting
Item
Outline:
43
Item - Revenue: Design Principles
[See Section 7 of the Project Summary]
Reporting
Item
Revenue
Interest, Sales of
Fines,
Agency Dividend & Operational Rental of Goods and Service Licences or Property Transfers &
Penalties &
Services Rent on Revenue PPE Services Charges Permits Rates Subsidies
Forfeits
Land Rendered
45
Item: Revenue Exchange Revenue: Agency
Services
Reporting
Item
Agency Service
District
Provincial National
Municipalities
46
Item: Revenue Exchange Revenue:
Interest, Dividend and Rent on Land Reporting
Item
Prospecting,
Current and Deemed Mining and
Receivables Land
Non-current Interest Royalties
47
Item: Revenue Exchange Revenue:
Administrative Fees Reporting
Item
Administrative Fees
48
Item: Revenue Exchange Revenue: Rental of
Property, Plant and Equipment
Reporting
Straight-lined Straight-lined
Operating Operating
Contingent Contingent
Sublease Sublease
Payment Payment
49
Item: Revenue Exchange Revenue: Sale of
Goods and Rendering of Services
Academic Services Immunisation Fees Reporting
50
Item: Revenue Exchange Revenue: Sale of
Goods and Rendering of Services (Continue)
Sale of Goods: Transport Fees
Agricultural Products Valuation Services
Promotions/Corporate
Gifts
Publications
Valuation Rolls
Voters Rolls
Scrap Waste and Other
Goods
Reporting
Streets/Street Markets
Item
Squatter Re-allocation
51
Item: Revenue Exchange Revenue: Service
Charges
Reporting
Item
Waste
Electricity Management
Waste Water
Water
52
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Electricity Reporting
Ancillary Charges
Losses
Electricity Services Incidental to Electricity Sales
Appliance Maintenance
Connection/Reconnection
Change Circuit Breaker
Connections New:
Government Housing
Non-government Housing
Disconnection/Re-connection
Temporary Connection Fee
53
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Electricity (Continue...). Reporting
Home Power 1
Home Power 2
Home Power 3
Home Power 4
Home Power Bulk
Industrial (400 Volts) (Low Voltage)
Industrial (11 000 Volts) (High Voltage)
Miscellaneous Service Revenue Affiliates and Inter Affiliates
Own Use/Interdepartmental Energy Sales
Revenue Adjustment
Special Negotiated Tariffs
55
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Electricity (Continue...). Reporting
Street Lighting
Water Pumps
Electricity Distribution Revenue for Services:
Network Charges
Ancillary Charges
Losses
Electricity Services Incidental to Energy Sales
56
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Waste Management Reporting
Item
Carrier Bags
Landfill Revenue
Refuse Bags
Refuse Removal
57
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Reporting
Waste Water
Item
Industrial Effluent
Treatment Effluent
Sanitation Charges
58
Item: Revenue Exchange Revenue: Service
Charges (Continue)
Reporting
Water
Item
Connection/Reconnection
Meter Reading Fees
Sales:
Conventional
Prepaid
59
Item: Revenue Non-exchange: Fines,
Penalties and Forfeits
Reporting
Item
Fines,
Penalties and Penalties Collections, Disconnection Fees,
Forfeits Motor Vehicle Licence, etc.
60
Item: Revenue Non-exchange: Licences and
Permits
Angling/Fishing Road and Transport Reporting
Municipal Properties
Item
62
Item: Revenue Non-exchange: Property Rates
(Continue...)
Small Holdings Reporting
Agricultural Purposes
Business and Commercial Purposes Item
Industrial Purposes
Purposes other than the above (specify)
Residential Properties
Special Rating Areas
Name and Purpose
State-owned Properties
State Trust Land
63
Item: Revenue Non-exchange Revenue:
Transfers and Subsidies
Monetary
Capital
In-kind
Transfers and
Subsidies
Monetary
Operational
In-kind
Reporting
64
Item
Item: Revenue Non-exchange Revenue:
Transfers and Subsidies (Continue...)
Reporting
DEPARTMENTAL AGENCIES AND ACCOUNTS
Item
DISTRICT MUNICIPALITIES
HOUSEHOLDS
NATIONAL GOVERNMENT
NON-PROFIT INSTITUTIONS
PRIVATE ENTERPRISES
PROVINCIAL GOVERNMENT
PUBLIC CORPORATIONS
66
Segment: Item
Expenditure
Reporting
Item
Outline:
67
Item - Expenditure: Design Principles
[See Section 7 of the Project Summary] Reporting
Item
1. Bad Debts Written-off face of statement of financial performance not set-off against
provision
2. Bulk Purchases Electricity & Water
3. Contracted Services Agency and Support/Outsourced Services, Contractors and
Professional and Special Services
4. Depreciation and Amortisation High-level PPE categories
5. Employee Related Cost Senior Manager (by Designation) and Other Staff
6. Interest, Dividends and Rent of Land defined by ERF
7. Inventory Consumed Opening + Purchases - Closing
8. Remuneration of Councillors Remuneration of the Public Office Bearers Act
9. Operational Cost Any other items not specifically provided
10. Transfers and Subsidies GRAP 23
11. Cost of Free Basic Services Actual cost incurred for providing free basic services as
classified under revenue foregone. In principle this would require reducing expenditure
allocated specifically and charged cost of free basic services. See Contra-account in
Revenue
12. Revenue Cost of Free Basic Services This is the contra-account for revenue cost of
free basic services provided for in the Revenue component of the Item Segment
68
Item: Expenditure Segment Snap Shot
Reporting
BULK PURCHASED
CORRECTIONAL SERVICES
INVENTORY CONSUMED
REMUNERATION OF COUNCILLORS
OPERATIONAL COST
Item
Less Material
Property
Electricity Services
Rates
Rendered
70
Item: Expenditure Bulk Purchases
Reporting
Item
71
Item: Expenditure Bulk Purchases (Continue...)
ESCOM
Reporting
Green
Charges
Rights and Certificates
Renewable, Cogen, etc
Self Generation
Losses
Technical
Non-technical
72
Item: Expenditure Contracted Services
Reporting
Item
73
Item: Expenditure Contracted Services:
Agency and Support/Outsourced Services
Reporting
Reporting
Item
77
Item: Expenditure Contracted Services:
Consultants and Professional Services (Continue)
Item
78
Item: Expenditure Contracted Services:
Consultants and Professional Services (Continue)
Infrastructure and Planning
Architectural Geoinformatic Services
Agriculture Geologist
Ecological Land and Quantity Surveyors
Engineering: Landscape Designer
Aeronautical Town Planner
Agricultural
Chemical
Civil
Electrical
Industrial
Mechanical
Metallurgical
Mining
Structural Reporting
79
Item: Expenditure Contracted Services:
Consultants and Professional Services (Continue)
Laboratory Services
Reporting
Agriculture Item
Medical
Roads
Water
80
Item: Expenditure Contracted Services:
Consultants and Professional Services (Continue)
Legal
Legal Advice and Litigation Reporting
Collection
81
Item: Expenditure Contracted Services:
Contractors
Reporting
Infrastructure:
Infrastructure: Infrastructure: Infrastructure:
Solid Waste
Roads Transportation Water
Disposal
Item
85
Item: Expenditure Depreciation and
Amortisation (Continue)
Reporting
Computer Equipment
Furniture and Office Equipment Item
86
Item: Expenditure Depreciation and
Amortisation: Infrastructure Electricity (Continue)
87
Item: Expenditure Depreciation and
Amortisation: Intangible Assets (Continue)
Reporting
88
Item: Expenditure Employee Related Cost
Annual Remuneration, Performance Based Bonus, Travel, Motor
Vehicle, Accommodation, Subsistence Allowance, Service Related
Key
Management Bonus, etc
Item
90
Item: Expenditure Inventory Consumed
Consumable Stores
Standard Rated
Zero Rated
Finished Goods
Maintenance Materials
Other Goods held for Resale
Raw Materials
Spare Parts
Water Reporting
Work-in-Progress
Item
91
Item: Expenditure Remuneration of
Councillors
Remuneration of
Councillors
Officer-bearer,
Travel, Housing,
Cell Phone, Out of
Pocket Expenses Reporting
Item
92
Item: Expenditure Operational Cost
Achievements and Awards Cleaning Services
Advertising, Publicity and Marketing Laundry Services
Auctions Car Valet and Washing Services
Bursaries (Non-employees) Commission
Corporate and Municipal Activities Cellular Contract (Subscriptions and Calls)
Customer/Client Information Licences (Radio and Television)
Gifts and Promotional Items Postage/Stamps/Franking Machine
Municipal Newsletters Radio and TV Transmissions
Signs Rent Private Bag and Postal Box
Staff Recruitment Satellite Signals
Tenders SMS Bulk Message Service
Assets less than Capitalisation Threshold Telephone, Fax, Telegraph and Telex
Audit Cost: External Telemetric Systems
Bank Charges, Facility and Card Fees Telephone Installations
Current Accounts
Fleet and Other Credit/Debit Cards
Investments
Lease Payments
Long/Short Term Loans and Borrowings
Bargaining Council
Reporting
Item
93
Item: Expenditure Operational Cost
(Continue...)
Contribution to Provisions:
Alien Vegetation External Computer Services
Decommission Cost Data Lines
Rehabilitation of Landfill Sites GPS Licence Fees
Copyrights Information Services
Licences and Permits Internet Charge
Dumping Fees Mainframe Time
Eskom Connection Fees Network Extension
Entertainment Specialised Computer Services
Mayor System Adviser
Councillors System Development
Senior Management Wireless Network
94
Item: Expenditure Operational Cost
(Continue...)
Freight Services Event
Firearm Handling Fees National
Full Time Union Representative International
Honoraria (Voluntary Workers) System Access and Information Fees
Insurance Underwriting: Travel Agency Fees
Insurance Aggregation Office Decoration
Claims paid to Third Parties Operating Leases:
Insurance Brokers Fees Biological/Cultivated Assets
Insurance Claims Buildings
Excess Payments Computer Equipment
Risk Management Programs Furniture and Office Equipment
Premiums Heritage Assets
Land Alienation Costs Infrastructure [Airports, Cemeteries,
Learner and Internships Electricity, Roads, Solid Waste Disposal,
Levies WRC Transportation & Water]
Licences: Intangible Assets
Licence Agency Fees Investment Properties
Motor Vehicle Licence Registration Machinery and Equipment
Performing Arts Transport Assets
Reporting
95
Item
Item: Expenditure Operational Cost
(Continue...)
Printing and Publications Road Worthy Test
Professional Bodies, Membership and Skills Development Fund Levy
Registration Search Fees
Property Payments: Servitudes and Land Surveys
Cleaning Services Signage
Deeds Storage of Files (Archiving)
Electricity Compliance Certificate Storage of Assets and Goods
Fire Protection Small Differences Tolerance
First Aid Taking Over Contractual Obligations
Fumigation Service Toll Gate Fees
Gardening Service Transport provided as part of Functions
Gas Events
Laundry Services Funerals
Management Dee Patients and Corps
Property Maintenance
Municipal Services
Pest Control
Safeguard and Security Reporting
Rewards Incentives
Item: Expenditure Operational Cost (Continue...)
Travel and Subsistence
Reporting
A F
c D I
o
c a n Own Transport Provided
o Car Rental
o i c
d
m l i
m y d
& Public Transport
o e
d A n Own Transport
B
a l t
e
t l a Air Transport
v
i o l
e
o w
r
n a C
a
n o Railway Transport
g
c s
e
e t
s
Road Transport
Water Transport
97
Item: Expenditure Transfers and Subsidies
Departmental Agencies
and Accounts
Foreign Government
Allocations
In-kind and International
Capital Organisations
Monetary Households
Value
Transfers and Local Government
Subsidies
District Municipalities
Operational
Non-profit Institutions
Operational
Private Enterprises
Monetary
Value Public Corporations
Reporting
Universities and
Item
Technicons
98
Contra Accounts, Gains and
Losses and Surplus/Deficit
99
Contra Accounts
Reporting Electricity/Other
Energy
Item (50kw)/household
Water
(6kl/household)
Cost of Free
Basic Services
Rendered
Sanitation
Refuse
100
Contra Accounts
Property Municipal
Electricity Sanitation Solid Waste Water
Rates Housing
Indigent Owners
Pensioners/Social Grants
Reporting
Temporary Relief Rebates
Item
101
Gains and Losses
IMPAIRMENT LOSS/REVERSAL OF IMPAIRMENT LOSS PROPERTY, PLANT AND EQUIPMENT:
Biological/Cultivated Assets
Buildings
Computer Equipment
Furniture and Office Equipment
Heritage Assets
Infrastructure:
Airports
Cemeteries
Electricity Roads
Solid Waste Disposal
Transportation
Water
Intangible Assets
Investment Properties
Machinery and Equipment
Transport Assets
Reporting
102
Item
Surplus/Deficit
Reporting
103
Segment: Item Assets,
Liabilities and Net Assets
Reporting
Item
Outline:
104
Item: Assets, Liabilities and Net Assets- Current
Assets
Cash and Cash Equivalents
Reporting
Agricultural Assets
Investments
105
Item: Assets, Liabilities and Net Assets
Current Assets
Reporting
Item
Cash at Cash on
Bank Hand
Call
Bank Savings Deposits Cashier Cash in
Petty Cash
Accounts Accounts and Floats Transit
Investments
106
Item: Assets, Liabilities and Net Assets- Current
Assets (Continue)
Item
107
Item: Assets, Liabilities and Net Assets- Current
Assets (Continue)
Other Current
Financial Assets
Income Tax Inventory
receivable
Contractual Rights Agricultural
Derivative Assets
Financial
Instruments
Consumable
Unamortised
Stores
Discount Finished Goods
Maintenance
Materials
Other Goods
held for Sale
Raw Materials
Spare Parts
Water
Work-in-
progress
Reporting
Item
108
Item: Assets, Liabilities and Net Assets
Current Assets (Continue)
Reporting
Item
109
Item: Assets, Liabilities and Net Assets Current
Assets: Trade and Other Receivables from Exchange Transactions
Reporting
Electricity
Merchandising, Jobbing and
Opening Balance
Contracts Monthly Billing
Property Rental Debtors Prior Period Corrections and Errors
Service Charges Collections
Waste Water Management
Debt Write-off
Waste Management
Closing Balance
Water Management
110
Item: Assets, Liabilities and Net Assets
Non-current Assets
Non-current Assets
Non
Investment Current
Other
in Receiva- Property,
Defined Defined Invest- Non-
Biological Heritage Intangible Associate/ Invest- bles from Plant and
Benefit Tax ment current
Assets Assets Assets Joint ments Non- Equipment
Assets Assets Property Financial
Venture/ exchange
Assets
Subsidiary Transac-
tions
Reporting
Item
111
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Biological Assets
Dairy Cattle
Feathered Animals
Opening Balance
Forests and Plantations
Acquisitions
Fruit Trees
Change in Accounting
Game Animals Policy/Correction of Error
Animals for Reproduction Fair Value Gains and Losses
Animals for Wool Sales/Disposals
Dogs / Horses Transfers Made/Received
Vines Closing Balance
Plants (Seed and Production)
Reporting
Item
112
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Reporting
Item
Defined
Deferred
Benefit
Tax Assets
Assets
113
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Heritage Assets
Archives
Areas of Land of Historic
Cost/Revaluation Specific Significance
Antiques and Collections
Cultural Significant Buildings
Municipal Jewellery
National Monuments
National Parks
Paintings
Accumulated Sculptures
Depreciation Works of Art
Reporting
Item
114
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Cost
Revaluation Intangible Reporting
Assets
Accumulated
Item
Depreciation
Capital Development All Functions Electricity
Cost excluding Distribution and
Computer Software Electricity General Plant
Franchise and Consents
Incorporation and
Organisational Cost
Owned and In- Held for Future
Mastheads and
Publishing Titles use Use
Patents, Licences,
Copyrights, Brand
Names and Trademarks
Service Operating and Leased to
Finance Leased
Land Rights [Distribution Others
or General Plant
115
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Investment in
Investment
Associate/Joint Investments
Property
Venture/Subsidiary
Bankers Acceptance
Housing Development
Certificate
Bank Deposits
Bank Repurchase
Agreements
Derivative Financial
Assets
Listed Corporate Bonds
Reporting and Stock Cost/Accumulated
Municipal Bonds Depreciation/Impairment
National Government
Item
Securities
Negotiable Certificates
116
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Car Electricity
Computer and Property Rental Unamortised Debt
Electronic Debtors Expense
Equipment Waste Water Unamortised
Housing Selling Management Preference Share
Schemes Service Charges Expense
Housing Waste Management
Water
Housing Land
Sales
Sporting and Other
Bodies
Staff Reporting
Item
117
Item: Assets, Liabilities and Net Assets Non-
current Assets: PPE
Reporting
118
Operational Cost
Item: Assets, Liabilities and Net
Assets: PPE (Continue)
Reporting
Assets Non-current
PPE CategoriesAssets Item
Buildings
Transport Assets
Infrastructure:
Electricity
Water
Sanitation
Solid Waste Disposal
Transportation
Railways
Gas Supply System
Cemeteries
Roads, Pavement, Bridges
and Storm Water
Airports
Machinery and Equipment
Furniture and Office Equipment
Computer Equipment
119
Item: Assets, Liabilities and Net Assets Non-
currents Assets (Continue)
Reporting
120
Item: Assets, Liabilities and Net Assets Non-
current Assets: PPE (Continue)
Assets Non-current Assets
Owned and
In-use
All Functions
Electricity
Leased to
Computer Others
Equipment
Electricity
Future Use
Function
Reporting
Item
121
Item: Assets, Liabilities and Net Assets
PPE Detail Classification for Owned Cost Model
Decommission, Impairment/Reversal
Restoration and of Impairment
Opening/ Similar Liabilities
Cost Closing
Balance Transfers' Received
Correction of Error Cost
Depreciation on
Disposals/Transfers
Item
122
Item: Assets, Liabilities and Net Assets
Liabilities
Bank Overdraft
Consumer Deposit
Finance Lease Borrowings
Provisions Transfers and Subsidies
Transfers and Subsidies Other Financial Liabilities
Trade and Other Payables Provisions
VAT Payable Defined Benefit Plan Obligations
Borrowings
Financial Liabilities Reporting
Item
123
Item: Assets, Liabilities and Net Assets
Current/Non-current Liabilities
Accrued Leave Reporting
Staff Parity
Insurance Claims
Impairment:
Insurance Claims
Property Rates
Transfers and Subsidies
Current and Non-
Unauthorised Expenditure
current Provisions
Impairment:
Electricity
Merchandising, Jobbing and Contracts
Service Charges
Waste Management
Waste Water Management
Water
124
Landfill Sites
Item: Assets, Liabilities and Net Assets Net
Assets
Reporting
125
Segment: Fund
Source? Funding
Reporting
Outline:
126
Funding
1. Legislative Framework:
MFMA Section 18 and 19: funding of capital and operational spending
DORA: specific reporting requirements
2. Budget Reporting Format: supplement to budget funding mechanism
3. ERF: determine categories for transfers and subsidies
4. General: operational expenditure from operational revenue AND capital
expenditure from capital revenue sources
5. LGPRA: accounting - special rating areas
6. Equitable Share: cost vs. value of funding
7. Internal Service Charges: reporting information
8. Allocation in-kind: GRAP 23 principles re goods and services in-kind
9. Transfers and Subsidies: annual review of content and update
10. District Municipalities: functional classification
11. Other Transfers and Subsidies: limited information
127
Fund: Segment Outline
Funding
Reporting
General Capital
Abattoirs, City
Equitable Share Parks, Reserves, Allocations In-kind Annuity Loans, Bankers
Special Rating Gardens, Fresh Monetary Allocations Acceptance Certificate,
Finance Leases, Local
Areas Produce Markets, Operational Registered Stock,
Urban Transport, Allocations In-kind Marketable Bonds, Non-
Property Agencies, Monetary Allocations annuity Loans, Non-
marketable Bonds, PPP
Tourism, Zoos and Liabilities, Securities, etc.
Museums, etc?
Revenue Transfers &
Subsidies
Commercial
Borrowing:
Non-current
Standard
Vote? Classification Function
Reporting
Outline:
129
Function: Design Principles Standard
Classificati
on
Function
Reporting
130
Function: Segment Outline
Standard
Classificati Function
on
Reporting
Municipal
Community Economic and
Governance Trading
and Public Environmental Other
and Service
Service Service
Administration
131
Function: Segment Outline
Aged Care, Home Assistance and / Transport Facilities / Cemeteries and
Crematoriums / Child Care Facilities / Community Halls and Facilities / Libraries and
Archives / Museums and Art Galleries / Animal Care / Literacy Programmes /
Community Theatres and Zoos
and Social
Services
Agricultural / Animal Controls and Diseases / Archives / Cultural Matters / Consumer
Protection / Disaster Management / Education / Indigenous and Customary Law
Communi Core
ty and Housing
Public Non-core
Service
Civil Defence / Fire Fighting and Protection / Control of Public Nuisance / Cleaning
/ Disaster Management / Fencing and Fences / Licensing and Control of Animals /
Public Safety Police Forces, Traffic and Street Parking Control
Non-core
132
Function: Segment Outline
Standard
Classificatio Function
n
Reporting
Biodiversity and
Indigenous Forests / Nature
Environmental Landscape / Coastal
Conservation / Pollution
Protection Protection / Pollution
Control / Soil Conservation
Control
Corporate Wide
Strategic Planning /
Economic
Development Liquor Licensing / Provincial
Economic and Planning and Planning / Licensing Planning / Regional Planning
Environmental Development and Regulations / and Development / Urban
Service Town Planning, and Rural Development
Building Regulations
and Enforcement
(City Engineer
133
Function: Segment Outline Standard
Classificati
on
Function
Reporting
Municipal
Governance and
Administration
Human Resources
Budget Officer Information Technology Mayor and Council
Chief Financial Officer Property Services Municipal Manager
Creditors Asset Management
Property Rates Fleet Management
Revenue Management Internal Audit Services
Treasury and Cash Management Legal Services
Marketing, Publicity and Media
Coordination
Public Works
Risk Management
Security Services
Supply Chain Management
Trading Regulations
134
Standard
Classificatio Function
n
Reporting
Trading Service
Sewerage/Storm
Recycling/Disposa Distribution
Water
Core: Distribution l /Removal/Street
Management/ Storage
Cleaning
Public Toilets
Non-core: Non-core
Non-core: Non-core
Generation
135
Standard
Classificatio Function
n
Reporting
Other
Air
Abattoirs Forestry Markets Tourism
Transport
136
Segment: Project
Outline:
137
Project: Design Principles Reporting
Project
Projects
Project
Capital Operational
Maintenance
Existing Own
and Repair
Operating
New Transfers
Expenses
Typical Work
Transfers 139
Streams
Project: Capital - Infrastructure
Reporting
Project
Rehabilitation
and PPE Categories Project (Add)
Refurbishment
Existing
Upgrade and
PPE Categories Project (Add)
Additions
Rehabilitation
and PPE Categories Project (Add)
Refurbishment
Transfers
Upgrade and
PPE Categories Project (Add)
Additions
140
Project: Capital Non-infrastructure
(Continue) Reporting
Project
Rehabilitation
and PPE Categories Project (Add)
Refurbishment
Own
Upgrade and
PPE Categories Project (Add)
Additions
Non-
infrastructure
Rehabilitation
and PPE Categories Project (Add)
Refurbishment
Transfers
Upgrade and
PPE Categories Project (Add)
Additions
141
Project: Operational
Reporting
Project
PPE Categories
Default Transactions Infrastructure
Operational Non-infrastructure
PPE Categories
Transfers
142
Project: Operational (Continue)
Reporting
Reporting
Beneficiary?
Regional
Indicator
Outline:
145
Regional Indicator: Design Principles
Reporti
ng
Regional
Indicator
Information?
146
Regional Indicator: Segment Outline
Reportin
g
Regional
Indicator
Regional
Indicator
Metro / No
National Provincial District
Regional
Functions Functions Munic. Munic.
Indicator
Admin/ Admin/
Whole of Local Whole of
Areas Head Head
the Munic. Munic. the District
Office Office
Admin/
Whole of
Satellite Ward Ward
the Area
Office
147
Segment: Costing Indicator
Beneficiary?
Reporting
Costing
Outline:
148
Introduction
149
Tariff determination
150
Segment: Costing
151
Segment: Costing
152
Segment: Costing
153
Segment: Costing
154
Segment: Costing
155
Conclusion
156
4.
Practical Example
Outline:
157
Practical Examples
Discussion of Selections
158
5.
SCOA Implementation
Outline:
159
SCOA Roadmap - Timelines
Vendor Evaluation
Develop evaluation model to evaluate vendors in meeting minimum system requirements and the
specification for SCOA Implementation
Assistance to Developers in the implementation of SCOA and linking to Business Processes and
Modules
Update/Revision to SCOA
162
Identified Potential Pilots
163
Comment Process What do we require?
Submit comments on the Regulations and Tables per email, internet link, post or
hand delivery
Sufficient detail, definitions and explanations need to be provided for adding
accounts
Do a comparison to the chart of accounts currently used by the municipality and
ensure that accounts are available for all existing postings
Provide inputs on matters requiring clarification not sufficiently addressed in the
existing project documents - suggestions/inputs to clarify/refine the definitions
Comments required by 2 December 2013 on the prescribed formats
DO NOT HESITATE TO FORWARD EMAILS TO CLARIFY MATTERS IF THE
MUNICIPALITY ENGAGED IN A COMPARISON EXERCISE
164
Conclusion
165